When calculating average earnings, take into account the increase in salary (tariff rate, monetary remuneration) of the employee. But don’t take the reduction into account.
When an organization increases salaries (tariff rate, monetary remuneration), the average salary must be calculated (recalculated) taking into account the increase factor (conversion factor). This must be done in one case: if the increase affected all employees of the organization (branch, structural unit) (paragraph 1, clause 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922).
Situation: is it necessary to index average earnings if employee salaries were reduced, but at the same time monthly bonuses were introduced as a percentage of the salary (in total earnings increased)?
Answer: no, it is not necessary.
This conclusion can be made on the basis of paragraph 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922. It states that average earnings need to be indexed precisely when the salary increases, and not other payments.
An example of taking into account a change in the remuneration system (transition from a time-based to a time-based bonus system of remuneration) when calculating the average salary of an employee
The calculation period for payment of average earnings for business trip days is from November 1, 2014 to October 31, 2015.
Ivanova’s monthly salary as of November 1, 2014 was 20,000 rubles. From January 1, 2015, the employee was transferred to a time-based bonus payment system. She was installed:
- salary in the amount of 15,000 rubles;
- monthly bonus for exceeding the plan for the month (exceeding the plan by 30%) in the amount of 50 percent of the salary.
Despite the fact that the employee’s total monthly salary has increased, this increase is not taken into account when calculating average earnings. Average earnings are not indexed.
Conversion factor
The conversion factor is determined as follows: it is necessary to divide the new salary (tariff rate, monetary remuneration) of the employee by its previously established amount. Moreover, if an increase in salary (tariff rate, monetary remuneration) in an organization was accompanied by a change in the composition and (or) amount of monthly payments, which directly depend on its size, then indexation must be carried out taking this into account. For example, if, with an increase in employee salaries, monthly percentage increases were reduced (cancelled) (i.e., the wage structure changed). This procedure follows from paragraph 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
Indexing of payments
The composition of payments that need to be indexed in connection with an increase in salary (tariff rate, monetary remuneration), in particular, includes:
- bonuses established by the remuneration system and meeting the requirements of paragraph 15 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922 (subparagraph “n” of paragraph 2 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922);
- allowances, additional payments, other types of salary payments used in the organization (subparagraphs “k” and “o” of paragraph 2 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922).
This conclusion can be made by paragraph 16 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
In this case, only those payments that directly depend on the size of the salary (tariff rate, remuneration) and are set at a fixed percentage or multiple of it need to be adjusted by the conversion factor.
If payments are set in a range of values (interest, multiple) or in an absolute (monetary) amount, they do not need to be increased by a conversion factor.
This follows from paragraphs 6 and 7 of paragraph 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
For example, if due to an increase in salary (tariff rate, monetary remuneration) the amount of the bonus does not change, then it does not need to be adjusted by the conversion factor. And if the bonus is set as a percentage of the salary (tariff rate, monetary remuneration), then it is subject to adjustment. Moreover, the percentage should be fixed, not floating.
An example of taking into account changes in the remuneration system when calculating the salary increase coefficient (conversion factor)
Employee of the organization E.V. Ivanova was on a business trip from November 19 to November 25, 2015. During the business trip, she retains her average salary.
The calculation period for payment of average earnings for business trip days is from November 1, 2014 to October 31, 2015 (245 working days). Billing period completely worked out.
Ivanova’s monthly salary is 20,000 rubles. According to the bonus regulations, the employee is paid a monthly bonus for production results in the amount of 50 percent of the salary. It is included in the calculation of average earnings in full.
In January 2015, the organization experienced overall change remuneration system, as a result of which salaries increased and bonuses calculated as a percentage of salary were reduced.
Ivanova’s salary was increased to 30,000 rubles. The monthly bonus has been reduced to 30 percent of the salary.
The amount of salary and bonus accrued to Ivanova during the billing period was:
- from November to December 2014 - 30,000 rubles. (RUB 20,000 + RUB 20,000 × 50%);
- from January to October 2015 - 39,000 rubles. (RUB 30,000 + RUB 30,000 × 30%).
The accountant calculated the increase coefficient based on the ratio of the employee’s new salary to the previously established salary, taking into account the monthly bonus calculated as a percentage of the salary.
The increase coefficient from November to December 2014 was:
(30,000 rub. + 30,000 rub. × 30%): (20,000 rub. + 20,000 rub. × 50%) = 1.3.
Situation: to how many decimal places should the salary increase factor (conversion factor) be rounded when calculating average earnings? There has been an increase in salaries across the organization as a whole..
The more characters, the more accurate the calculation. In this case, the employer has the right to choose any of the rounding options. That is, both up to one or two decimal places, and up to three or four decimal places. In private explanations, specialists from the Russian Ministry of Labor recommend that when calculating the salary increase coefficient, rounding should be done to at least two decimal places.
Situation: is it necessary to take into account the increase in salaries in the organization when calculating average earnings? An employee dismissed due to staff reduction receives severance pay and average earnings for the period of employment.
Answer: yes, it is necessary.
When increasing salaries in an organization, the average salary must be calculated (recalculated) taking into account the increase factor (conversion factor). This must be done in one case: if the promotion affected all employees of the organization (branch, structural unit). This is stated in paragraph 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
There are no exceptions in the law regarding the calculation of average earnings for dismissed employees.
- the employee's new salary in the month in which the last increase occurred;
- the employee's previously established salary.
Since the employee is dismissed, no new salary will be established for him. However, the conversion factor can be determined based on data for a position similar to the position of the dismissed employee.
Salary increase period
The procedure for calculating average earnings taking into account the conversion factor depends on when the salary (tariff rate, monetary remuneration) was increased:
- within the billing period;
- after the expiration of the billing period, but before the occurrence of an event related to the preservation of average earnings;
- during the period of maintaining average earnings.
Salary increase in the billing period
If the salary (tariff rate, monetary remuneration) was increased within the billing period, the payments taken into account when determining the average salary that preceded the change must be multiplied by the conversion factor. This is stated in paragraph 2 of clause 16 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
Determine the conversion factor by which payments for the billing period (average earnings) need to be adjusted using the formula:
An example of accounting for salary increases when calculating average earnings. Salary increased within the pay period
Due to health reasons, from June 24 to July 14, 2015 (inclusive), employee of the organization V.K. Volkov was transferred to a lower-paid job. During this time, he retains his average earnings. The calculation period for payment of average earnings is the time from June 1, 2014 to May 31, 2015.
In connection with the general increase in salaries in the organization during the billing period, Volkov’s official salary was increased (in October and February). In January 2015, the employee was awarded an annual bonus for 2014 based on production performance in the amount of 40 percent of the salary for December. It is included in the calculation of average earnings in an amount calculated in proportion to the time worked in the billing period (paragraph 5, clause 15 of the Regulations, approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922). The amounts of payments accrued to Volkov during the billing period are presented in the table.
| Month of billing period | Number of working days in the billing period according to the calendar | Number of days actually worked in the billing period | Earnings, rub. |
| 2014 |
|||
| June | |||
| July | |||
| August | |||
| September | |||
| October | |||
| November | |||
| December | |||
| 2015 |
|||
| January | 35 000 = 25 000 + 10 000 |
||
| February | 23 684,21 |
||
| March | |||
| April | |||
| May | |||
| Total | 244 | 240 | 303 684,21 |
The increase factors were:
- from June to September 2014:
30,000 rub. : 20,000 rub. = 1.5;
- from October 2014 to January 2015:
30,000 rub. : 25,000 rub. = 1.2.
The annual bonus is set as a fixed percentage of the salary, therefore it is adjusted by the increase factor calculated for the month of its accrual (i.e. by 1.2). The amount of the bonus subject to adjustment by the increase factor was:
10,000 rub. : 244 days × 240 days = 9836.07 rub.
The accountant adjusted Volkov's earnings for the billing period taking into account increasing factors.
| Month of billing period | Earnings for the billing period subject to indexation, rub. | Conversion factor | Earnings for the billing period taking into account the salary increase, rub. |
| 2014 |
|||
| June | |||
| July | |||
| August | |||
| September | |||
| October | |||
| November | |||
| December | |||
| 2015 |
|||
| January | 34 836,07 = 25 000 + 9836,07 | 41 803,28 |
|
| February | 23 684,21 | 23 684,21 |
|
| March | |||
| April | |||
| May | |||
| Total | 303 520,28 | - | 365 487,49 |
Thus, taking into account the salary increase, Volkov’s earnings for the billing period amounted to 365,487.49 rubles.
The accountant calculated the average daily earnings as follows:
RUB 365,487.49 : 240 days = 1522.86 rub./day.
The period of transfer to a lower-paid job due to health reasons was 15 working days. The average salary retained by Volkov for this period was:
RUB 1,522.86/day × 15 days = 22,842.90 rub.
Situation: how to take into account, when calculating average earnings, a salary increase that occurred when the employee was working full time? The employee went from part-time to full-time during the pay period..
If an employee works part-time (part-time or weekly), the average daily earnings are calculated in general procedure(paragraph 5, clause 9 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922).
Since the salary was increased within the billing period, payments preceding the increase must be multiplied by the conversion factor (paragraph 2 of clause 16 of the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922). At the same time, when calculating the conversion factor, take into account the employee’s full salary established in the staffing table (and not the salary he receives while working part-time).
An example of accounting for salary increases when calculating average earnings. The employee worked part-time for part of the pay period, and the increase occurred after he was transferred to full-time
Ostrovskaya A. Z., leading tax consultant, Tax Optima Consulting Group LLC
Magazine "Accounting in Construction" No. 8, August 2010
During the vacation period, accountants at construction companies often have problems calculating vacation pay related to specific circumstances, for example, with the indexation of average earnings. There are some nuances to consider here...
Salary increases should be general
Let us remember that in some cases it is necessary to determine the average salary of an employee. The most common reasons for this are vacations and business trips.
While on vacation, a person is entitled to income calculated based on average earnings for the previous 12 months. The same thing applies to business trips (Articles 114, 139, 167 of the Labor Code of the Russian Federation).
The specifics of calculating average earnings are defined in the Regulations approved by Decree of the Government of the Russian Federation dated December 24, 2007 No. 922 (hereinafter referred to as the Regulations).
This document also regulates the calculation procedure for salary increases. In this case, the average earnings are subject to indexation by an increase factor.
That is, if the organization has increased tariff rates (salaries) and monthly payments to them, the average earnings are indexed - according to the rules of paragraph 16 of the Regulations. The indexation coefficient takes into account the increase in both tariff rates and monthly payments to them. After all, when calculating average earnings, all payments provided for by the organization’s remuneration system are taken into account. These include: ; allowances and additional payments for professional skills, length of service, combination of jobs, working conditions, etc.; bonuses and rewards, etc.
The coefficient is calculated using the formula:
K = NRO/PRO,
Where TO– conversion factor;
NRO– the new amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances) in the month when the last increase occurred;
PRO– the same amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances).
Please note: this procedure is applicable only in cases where the change in payment occurs on a mass basis - throughout the organization, its branch or structural unit (department, section, etc.).
At the same time, if we are talking about a personal increase in salary for an individual (for example, a specialist after completing a probationary period or an employee in connection with the transition to new position), this does not entail the use of a multiplying factor when calculating vacation pay.
In this case, vacation pay will be calculated from actually accrued income without adjustment (letter of Rostrud dated October 31, 2008 No. 5920-TZ).
Please note: for part-time workers, the average salary is determined in the same manner as for main employees (clause 19 of the Regulations).
If leave is granted to an internal part-time worker, then the average salary is calculated for both the main and part-time position.
Indexing order
The recalculation of average earnings depends on the moment at which salaries increased.
Increase in salary in the billing period
First, let's consider the situation when the increase occurred in the billing period, that is, in the period for which average earnings are calculated - the previous 12 months.
Let us immediately note that the indexation procedure (clause 16 of the Regulations) used in this situation was amended by Decree of the Government of the Russian Federation of November 11, 2009 No. 916.
As before, it is necessary to index payments that are taken into account when determining average earnings that were accrued in the billing period for the period of time preceding the increase. Their increase by the indexation factor was provided for earlier. But with regard to the calculation of the coefficient, some changes have occurred.
Before the clarification, the coefficient was determined as follows: the amount of salary established in the month of occurrence of the event that is associated with the preservation of average earnings was divided by the salary established in each month of the billing period.
Now it’s different: the amount of salary established in the month of the last salary increase is divided by the salary established in each month of the billing period. That is, the unique equivalent is not the last month of work, but the last salary increase.
As you can see, the wording has changed fundamentally. New edition Clause 16 of the Regulations clarifies the procedure for calculating the coefficient in a situation where in the billing period there is first an increase in salary and then a decrease. Which, unfortunately, is quite possible during a crisis.
The previous edition did not allow us to understand how the indexation coefficient should be determined in this case? And should it be calculated at all if, for example, in the month the employee went on vacation, the salary was lower than originally established? That is, there was no clear calculation procedure.
At present, there is no ambiguity: the coefficient is calculated based on the last increase in salary (tariff, etc.) and it is applied to payments for the period preceding this increase. In other words, indexation for the corresponding period is also carried out in the case when, at the time the employee goes on vacation, his salary is lower than the previously established values.
Example 1. Installer of Altair LLC Sokolov V.L. from June 21, 2010, he went on vacation for 14 calendar days. The calculation period for determining average earnings is the period from June 1, 2009 to May 31, 2010. Let us assume that he worked out the entire billing period in full.
Sokolov’s salary (taking into account changes in the organization as a whole related to its financial situation) was:
The procedure for calculating average earnings will be as follows.
In the month of the last salary increase, its size was 30,000 rubles. Therefore, the coefficient is calculated using the formula given above (to simplify the example, we will assume that there were no other payments):
30,000 rub. : 23,000 rub. = 1.304.
Salaries for the months preceding the increase (from June 2009 to September 2009 inclusive) must be adjusted by this amount. Consequently, the amount of payments taken into account when calculating average earnings will be 344,968 rubles. (23,000 rub. x 4 months x 1,304 + 30,000 rub. x 5 months + 25,000 rub. x 3 months).
Let's determine the average daily earnings:
RUB 344,968 : 12 months : 29.4 = 977.80 rub.
The amount of accrued vacation pay will be equal to 13,689.2 rubles. (977.80 rub. x 14 k. days.).
Increase in salary in the month of vacation
Salaries for an organization (branch, department) can be increased after the pay period. In this case, two options are possible:
– the increase occurred before the start of the vacation (if the vacation, for example, does not start on the 1st day of the month);
– the increase occurred while the employee was on vacation.
In both cases, the average salary is also subject to indexation by a conversion factor, which is calculated simply: the new salary is divided by the old salary amount.
Option I. In the first situation, the entire average earnings calculated for the billing period are increased by the conversion factor.
Example 2. Master of Mars LLC Balkin S.P. went on vacation from June 7, 2010 for 14 calendar days. His salary in the billing period was 25,000 rubles, and from June 1, salaries across the organization were increased (for foremen - up to 30,000 rubles).
The indexation coefficient will be equal to 1.2 (30,000 rubles: 25,000 rubles). Balkin worked out the billing period completely. His average daily earnings (including indexation) will be 1020.41 rubles. (RUB 25,000 x 12 months x 1.2 / 12 months: 29.4).
And vacation pay will be accrued in the amount of 14,285.74 rubles. (RUB 1,020.41 x 14 days).
Option II. The salary increase occurred during vacation. In this case, separate calculations will be required.
Example 3. Let's use the initial data of example 2, but change its conditions. Master Balkin went on leave from June 28, 2010 for 14 days, and his salary was increased from July 1, 2010. Only the July part of vacation pay needs to be indexed.
The calculation will be made as follows.
Vacation pay was accrued to Balkin (without indexation, since at the time of calculation there was no order):
25,000 rub. x 12 months : 12 months : 29.4 x 14 days. = 11,904.76 rub.
After the employee returned from vacation, he was recalculated.
25,000 rub. x 12 months : 12 months : 29.4 x 3 days. = 2551.02 rub.
25,000 rub. x 12 months : 12 months : 29.4 x 11 days. x 1.2 = 11,224.49 rubles.
The total amount of indexed vacation pay is 13,775.51 rubles. (2551.02 + 11,224.49). Balkin was additionally charged 1870.75 rubles. (13,775.51 – 11,904.76).
Clarifications for calculating the coefficient
In addition to the wording changes we discussed above, there is another important amendment.
Changing the list of additional payments does not prevent indexation
Thus, at the end of paragraph 16 of the Regulations a paragraph has been added, the essence of which boils down to the following. If the company, in addition to the salary, has established additional monthly payments, the list (or size) of which changes when salaries are increased, then the coefficient is calculated taking into account these allowances. That is, the total amount of the new salary and allowances (according to the amended list) must be divided by the amount of the previous salary with previously established allowances.
In this case, a situation may arise when the indexation coefficient does not have to be applied, despite the increase in salaries.
For example, if salaries were increased by, say, 20 percent, while at the same time reducing the monthly bonus paid on salary by an amount equivalent to the salary increase. Dividing the new salary (increased salary plus reduced bonus) by the previous salary (salary plus bonus), we get a coefficient equal to 1. Since there was no actual increase in earnings, there is no need to index anything.
Companies paying additional amounts (other than salary) should remember that not all payments taken into account when calculating average earnings need to be adjusted by the calculated increase factor (exceptions are also set out in clause 16 of the Regulations).
The following are not subject to adjustment when recalculating average earnings:
– payments established in relation to tariff rates, salaries (official salaries), monetary remuneration in a range of values (interest, multiple);
– payments taken into account when determining average earnings, set in absolute amounts.
Therefore, if, for example, along with the salary, employees are paid permanent bonuses that are determined in absolute amounts (that is, in specific amounts) that do not depend on the salary, then when calculating vacation pay, there is no need to apply a conversion factor to such bonuses (they are not indexed).
It happens that a company pays bonuses set as a percentage, but based on a different indicator (not salary), for example, a bonus in the form of a certain percentage of the amount of work performed. Do these premiums need to be indexed?
Indeed, from paragraph 16 of the Regulations it clearly follows that when increasing, only those payments that are tied to tariff rates, salaries, and monetary remuneration are taken into account. Thus, for the indexation of payments, it is important not only the fact that they are established in a fixed amount (interest, multiple), but also the dependence on the amount of salary (rate, monetary remuneration). Consequently, payments depending on other indicators are not subject to adjustment when salaries increase in the organization.
Let us note that a similar conclusion is contained in the letter of the Ministry of Health and Social Development of Russia dated June 26, 2008 No. 2337-17.
Important to remember
When tariff rates (salaries) are reduced, the average earnings calculated for calculating vacation pay are not subject to adjustment (earnings are indexed only upward). That is, in this case, the average earnings are not reduced by adjustment, and all payments that are taken into account when calculating the average earnings are taken into account in the actual amount.
Earnings are indexed only with a massive increase in pay
For part-time workers, the average salary is determined in accordance with the general procedure
Payments set in absolute amounts are not adjusted
Among the main government guarantees on wages, he names measures that are taken to increase the level of real earnings of employees.
One of such measures, which is carried out due to an increase in prices for primary services and goods, is the indexation of earnings. How does this affect the size, and should it be taken into account when calculating payment?
The system according to which the amount due to a worker is calculated when he goes on a well-deserved rest for 28 (or more) days has long been established. In 2018, no new rules were developed for.
Until now, the process is regulated by Article 139 of the Labor Code of the Russian Federation and clause 4 of Government Decree No. 922 of December 24, 2007.
The formula remains the same:
Vacation pay= Average daily salary × Number of vacation days
When calculating vacation pay, you need to take into account all the employee’s income that is associated with the wage system. That is, salary, allowances, and other additional payments. There is no need to take into account amounts that are not assigned in the form of wages (in particular, sick leave or).
In the internal documentation of the institution, specific rules for wage indexation:
The approved adjustments begin to take effect with the approval of the order of the head of the enterprise, which must indicate the coefficient of increase in earnings and the date from which the changes made will take effect.
Based on such a document, changes to the organization’s staffing table are approved - a new increased amount of employee salaries is indicated. HR officers prepare additional agreements to employees’ employment agreements and send them to each of them for signing.
How to calculate the indexing coefficient for vacation when salary increases?
First you need to determine the CI - indexing coefficient salaries (salary increases).
To do this, you need to divide the new increased salary by the old one.
Formula:
Indexation coefficient= New salary / Old salary.
Example:
Let’s say that the salary portion of an employee’s salary was 25 thousand rubles, and after an increase - 30 thousand rubles. In this case, the salary increase factor will be as follows:
CI = 30 thousand rubles. / 25 thousand rubles = 1.2
Step-by-step procedure for calculating average earnings
Step 1. Calculation of the indexation coefficient using the formula given in the previous paragraph.
Step 2. P Recalculation (indexation) of average earnings for vacation pay, taking into account the moment of increasing the level of staff salaries.
At the same time 3 options for calculation are possible: indexation can occur during the billing period, after its end, but before the start of the vacation, or while on annual vacation.
Salary increased in the billing period
Option 1— the salary increase occurred in RP ().
In this case, it is necessary to multiply all payments directly from the beginning of the billing period to the month when the salary increased by the resulting indexation coefficient.
Example, if indexation is included in the billing period:
The employee is granted vacation, its duration is 28 days. The date from which it begins is February 9, 2018. The salary is 24 thousand rubles. There were no exclusion days during the billing period. It is equal to 12 months - from February 1, 2017 to January 31, 2018.
During the period from February to December 2017, wages did not change. In January 2018, it was increased by 5 thousand rubles.
Calculation:
The indexation coefficient is calculated as follows: 29 thousand/24 thousand = 1.208.
After this, the formula determines the average salary for vacation pay: (24 thousand × 1.2 × 11 months + 29 thousand × 1 month): (29.3 × 12) = 983.5 rubles.
The amount of vacation pay will be: 983.5 × 28 = 27,540 rubles.
Salary increased after the billing period
Option 2, this is when the salary increase occurred after the end of the pay period, but before the 1st vacation day.
In this case, the entire average salary of the billing period is multiplied by the indexation coefficient.
Example for indexation after the billing period:
Leave for 28 days is provided to the employee from March 9, 2018.
Earnings for last year- from March 1, 2017 to February 31, 2018 equals 240 thousand rubles.
There are no exclusion days.
The indexation coefficient is 1.25.
Calculation:
The average salary is determined by the corresponding formula: (240 thousand / 11 / 29.3) = 744.65 rubles.
Salary increased after the start of vacation
Third option- this is a case of a salary increase after the employee has already gone on vacation. In this case, the part of the vacation pay that remained at the time when new salaries were introduced is multiplied by the indexation coefficient.
Example in case of a salary increase while staying in the period of maintaining average earnings:
The employee goes on vacation on March 10. 2018
Its duration is 28 days.
Over the last year, I earned 150 thousand rubles. (from March 1, 2017 to February 31, 2018).
There are also no exclusion days.
From 19.03. 2018 salary increase - by 1.23.
Calculation:
According to the corresponding formula, the average salary is determined: (150 thousand / 12 / 29.3) = 427 rubles.
The amount of vacation pay is calculated taking into account the salary increase:
From March 19 to April 5, 2018 - for 19 days - the amount will be 9970 rubles. (4271 × 1.23 × 19).
The total amount of payments will be 13,810 rubles. (3940 + 9970).
After indexation, according to 1 of 3 options, the amount of vacation funds that should be paid to the employee going on vacation is determined.
If the employer does not increase income for employees
The institution where an employee works may sometimes “forget” to index the average earnings for the billing period for vacation pay if the salary was increased.
However, in accordance with clause 16 of the above-mentioned government decree number 922, if rates increase in the cases provided for in clause 16, then it is necessary to recalculate vacation payments.
In particular, such “forgetfulness” manifests itself in relation to women on maternity leave. And this is a violation of Article 132 of the Labor Code of the Russian Federation, which is considered an infringement in the field of wages.
It should be borne in mind that when a company has not prescribed a procedure for increasing earnings in internal regulations and has not changed the salaries of its employees for years, then it an administrative fine may be imposed according to Article 5.27 of the Russian Administrative Code.
The following are installed amount of penalties:
- for enterprise managers – from 1 to 5 thousand rubles;
- for individual entrepreneurs - from 1 to 5 thousand rubles;
- for an organization - 30-50 thousand rubles.
When a violation is established again, the fine increases.. In particular, penalties for an enterprise amount to 50-70 thousand rubles.
When an enterprise specifies the indexation process in a collective agreement, but does not increase payments to employees, it is subject to a fine of 3-5 thousand rubles.
Useful video
How vacation pay is recalculated after increasing employee salaries, watch the video:
Conclusions
Increasing employee wages has a dual effect. In particular, the wage fund increases, which further increases the financial burden on the institution.
The base for calculating tax deductions on profits is also reduced, and the amount of necessary transfers directly to the budget is reduced.
This may raise certain questions from the tax office. To avoid claims on her part, experts recommend that in documents defining the indexation procedure, refer to Articles 130 and 134 of the Russian Labor Code.
The specifics of calculating average earnings are defined in the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922.
This document also regulates the calculation procedure for salary increases.
In this case, the average earnings are subject to indexation by an increase factor.
Formula
indexation coefficient for salary increases
K = Nro / Pro
Where:
TO– indexation coefficient;
Nro– the new amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances) in the month when the last increase occurred;
About- the same amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances).
The recalculation of average earnings depends on the moment at which salaries increased.
1. Increase in salary in the billing period
The billing period for which average earnings are calculated is the previous 12 months.The salary amount established in the month of the last salary increase is divided by the salary established in each month of the billing period. That is, the unique equivalent is not the last month of work, but the last salary increase.
The coefficient is calculated based on the last increase in salary (tariff, etc.) and is applied to payments for the period preceding this increase. In other words, indexation for the corresponding period is also carried out in the case when, at the time the employee goes on vacation, his salary is lower than the previously established values.
Example 1
The Employee's salary (taking into account changes in the organization as a whole related to its financial situation) was:
– from June 1, 2009 to September 30, 2009 – RUB 23,000;
– from October 1, 2009 to February 28, 2010 – RUB 30,000;
– from March 1, 2010 to May 31, 2010 – RUB 25,000.
The procedure for calculating average earnings will be as follows.
In the month of the last salary increase, its size was 30,000 rubles. Therefore, the coefficient is calculated using the formula given above (to simplify the example, we will assume that there were no other payments):
30,000 rub. / 23,000 rub. = 1.304.
Salaries for the months preceding the increase (from June 2009 to September 2009 inclusive) must be adjusted by this amount.
Consequently, the amount of payments taken into account when calculating average earnings will be
RUB 344,968 (23,000 rub. x 4 months x 1,304 + 30,000 rub. x 5 months + 25,000 rub. x 3 months).
Let's determine the average daily earnings:
RUB 344,968 / 12 months / 29.4 = 977.80 rub.
The amount of accrued vacation pay will be equal to RUB 13,689.2(977.80 rub. x 14 k. days.).
2. Increase in salary in the month of vacation
Salaries for an organization (branch, department) can be increased after the pay period.In this case, two options are possible:
- The increase occurred before the start of the vacation (if the vacation, for example, does not start on the 1st day of the month);
- The increase occurred while the employee was on vacation.
Option 1.
In the first situation, the entire average earnings calculated for the billing period are increased by the conversion factor.
Example 2
The employee went on vacation from June 7, 2010 for 14 calendar days.
His salary in the billing period was 25,000 rubles, and from June 1, salaries across the organization were increased (for foremen - up to 30,000 rubles).
The indexation coefficient will be equal to
1.2 (30,000 rubles: 25,000 rubles).
The employee worked the entire pay period.
His average daily earnings (including indexation) will be
1020.41 rub. (RUB 25,000 x 12 months x 1.2 / 12 months: 29.4).
And vacation pay will be accrued in the amount
RUB 14,285.74(RUB 1,020.41 x 14 days).
Option 2.
The salary increase occurred during vacation. In this case, separate calculations will be required.
Example 3
Let's use the initial data of example 2, but change its conditions.
The employee went on leave from June 28, 2010 for 14 days, and the salary was increased from July 1, 2010.
Only the July part of vacation pay needs to be indexed.
The calculation will be made as follows.
Vacation pay was accrued to the Employee (without indexation, since there was no order yet at the time of calculation):
25,000 rub. x 12 months : 12 months : 29.4 x 14 days. = 11,904.76 rub.
After the employee returned from vacation, he was recalculated.
From June 28 to June 30, 2009 (3 calendar days), the amount of vacation pay is equal to:
25,000 rub. x 12 months : 12 months : 29.4 x 3 days. = 2551.02 rub.
From July 1 to July 11, 2010 (11 calendar days), the amount of vacation pay was:
Total amount of indexed vacation pay:
RUB 13,775.51 (2551,02 + 11 224,49).
The employee was additionally accrued 1870.75 rub. (13 775,51 – 11 904,76).
The following are not subject to adjustment when recalculating average earnings:
- Payments established in relation to tariff rates, salaries (official salaries), monetary remuneration in a range of values (interest, multiple);
- Payments taken into account when determining average earnings, set in absolute amounts.
Important to consider!
- When tariff rates (salaries) are reduced, the average earnings calculated for calculating vacation pay are not subject to adjustment (earnings are indexed only upward). That is, in this case, the average earnings are not reduced by adjustment, and all payments that are taken into account when calculating the average earnings are taken into account in the actual amount.
- Earnings are indexed only with a massive increase in pay.
- For part-time workers, the average salary is determined in a general manner.
- Payments set in absolute amounts are not adjusted.
Salary increases should be general
Let us remember that in some cases it is necessary to determine the average salary of an employee. The most common reasons for this are vacations and business trips. While on vacation, a person is entitled to vacation pay, calculated based on average earnings for the previous 12 months. The same thing applies to business trips (Articles 114, 139, 167 of the Labor Code of the Russian Federation).
The specifics of calculating average earnings are defined in the Regulations approved by Decree of the Government of the Russian Federation of December 24, 2007 No. 922 (hereinafter referred to as the Regulations). This document also regulates the calculation procedure for salary increases. In this case, the average earnings are subject to indexation by an increase factor.
That is, if the organization has increased tariff rates (salaries) and monthly payments to them, the average earnings are indexed - according to the rules of paragraph 16 of the Regulations. The indexation coefficient takes into account the increase in both tariff rates and monthly payments to them. After all, when calculating average earnings, all payments provided for by the organization’s remuneration system are taken into account. These include: wages; allowances and additional payments for professional skills, length of service, part-time work, working conditions, etc.; bonuses and rewards, etc.
The coefficient is calculated using the formula:
K = NRO/PRO,
Where TO- conversion factor;
NRO- the new amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances) in the month when the last increase occurred;
PRO- the same amount of salary (tariff rate, monetary remuneration) and monthly additional payments (allowances).
Please note: this procedure is applicable only in the case when a change in payment occurs on a mass basis - throughout the organization, its branch or structural unit (department, section, etc.).
At the same time, if we are talking about a personal increase in salary for an individual (for example, a specialist after completing a probationary period or an employee in connection with a transition to a new position), then this does not entail the use of an increasing factor when calculating vacation pay.
In this case, vacation pay will be calculated from actually accrued income without adjustment (letter of Rostrud dated October 31, 2008 No. 5920-TZ).
Please note: for part-time workers, the average salary is determined in the same manner as for main employees (clause 19 of the Regulations).
If leave is granted to an internal part-time worker, then the average salary is calculated for both the main and part-time position.
Indexing order
The recalculation of average earnings depends on the moment at which salaries increased.
Increase in salary in the billing period
First, let's consider the situation when the increase occurred in the billing period, that is, in the period for which average earnings are calculated - the previous 12 months.
Let us immediately note that the indexation procedure (clause 16 of the Regulations) used in this situation was amended by Decree of the Government of the Russian Federation of November 11, 2009 No. 916.
As before, it is necessary to index payments that are taken into account when determining average earnings that were accrued in the billing period for the period of time preceding the increase. Their increase by the indexation factor was provided for earlier. But with regard to the calculation of the coefficient, some changes have occurred.
Before the clarification, the coefficient was determined as follows: the amount of salary established in the month of occurrence of the event that is associated with the preservation of average earnings was divided by the salary established in each month of the billing period.
Now it’s different: the amount of salary established in the month of the last salary increase is divided by the salary established in each month of the billing period. That is, the unique equivalent is not the last month of work, but the last salary increase.
As you can see, the wording has changed fundamentally. The new version of paragraph 16 of the Regulations clarifies the procedure for calculating the coefficient in a situation where in the billing period there is first an increase in salary and then a decrease. Which, unfortunately, is quite possible during a crisis.
The previous edition did not allow us to understand how the indexation coefficient should be determined in this case? And should it be calculated at all if, for example, in the month the employee went on vacation, the salary was lower than originally established? That is, there was no clear calculation procedure.
At present, there is no ambiguity: the coefficient is calculated based on the last increase in salary (tariff, etc.) and it is applied to payments for the period preceding this increase. In other words, indexation for the corresponding period is also carried out in the case when, at the time the employee goes on vacation, his salary is lower than the previously established values.
Example 1. Installer of Altair LLC Sokolov V.L. From June 21, 2010, he went on vacation for 14 calendar days. The calculation period for determining average earnings is the period from June 1, 2009 to May 31, 2010. Let us assume that he worked out the entire billing period in full.
Sokolov’s salary (taking into account changes in the organization as a whole related to its financial situation) was:
- from June 1, 2009 to September 30, 2009 - 23,000 rubles;
- from October 1, 2009 to February 28, 2010 - 30,000 rubles;
- from March 1, 2010 to May 31, 2010 - 25,000 rubles.
The procedure for calculating average earnings will be as follows.
In the month of the last salary increase, its size was 30,000 rubles. Therefore, the coefficient is calculated using the formula given above (to simplify the example, we will assume that there were no other payments):
30,000 rub. : 23,000 rub. = 1.304.
Salaries for the months preceding the increase (from June 2009 to September 2009 inclusive) must be adjusted by this amount. Consequently, the amount of payments taken into account when calculating average earnings will be 344,968 rubles. (23,000 rub. x 4 months x 1,304 + 30,000 rub. x 5 months + 25,000 rub. x 3 months).
Let's determine the average daily earnings:
RUB 344,968 : 12 months : 29.4 = 977.80 rub.
The amount of accrued vacation pay will be equal to 13,689.2 rubles. (977.80 rub. x 14 k. days.).
Increase in salary in the month of vacation
Salaries for an organization (branch, department) can be increased after the pay period. In this case, two options are possible:
- the increase occurred before the start of the vacation (if the vacation, for example, does not start on the 1st day of the month);
- the increase occurred while the employee was on vacation.
In both cases, the average salary is also subject to indexation by a conversion factor, which is calculated simply: the new salary is divided by the old salary amount.
Option I. In the first situation, the entire average earnings calculated for the billing period are increased by the conversion factor.
Example 2. Master of Mars LLC Balkin S.P. went on vacation from June 7, 2010 for 14 calendar days. His salary in the billing period was 25,000 rubles, and from June 1, salaries across the organization were increased (for foremen - up to 30,000 rubles).
The indexation coefficient will be equal to 1.2 (30,000 rubles: 25,000 rubles). Balkin worked out the billing period completely. His average daily earnings (including indexation) will be 1020.41 rubles. (RUB 25,000 x 12 months x 1.2 / 12 months: 29.4).
And vacation pay will be accrued in the amount of 14,285.74 rubles. (RUB 1,020.41 x 14 days).
Option II. The salary increase occurred during vacation. In this case, separate calculations will be required.
Example 3. Let's use the initial data of example 2, but change its conditions. Master Balkin went on leave from June 28, 2010 for 14 days, and his salary was increased from July 1, 2010. Only the July part of vacation pay needs to be indexed.
The calculation will be made as follows.
Vacation pay was accrued to Balkin (without indexation, since at the time of calculation there was no order):
25,000 rub. x 12 months : 12 months : 29.4 x 14 days. = 11,904.76 rub.
After the employee returned from vacation, he was recalculated.
From June 28 to June 30, 2009 (3 calendar days), the amount of vacation pay is equal to:
25,000 rub. x 12 months : 12 months : 29.4 x 3 days. = 2551.02 rub.
From July 1 to July 11, 2010 (11 calendar days), the amount of vacation pay was:
25,000 rub. x 12 months : 12 months : 29.4 x 11 days. x 1.2 = 11,224.49 rubles.
The total amount of indexed vacation pay is RUB 13,775.51. (2551.02 + 11,224.49). Balkin was additionally charged 1870.75 rubles. (13,775.51 - 11,904.76).
Clarifications for calculating the coefficient
In addition to the wording changes we discussed above, there is another important amendment.
Changing the list of additional payments does not prevent indexation
Thus, at the end of paragraph 16 of the Regulations a paragraph has been added, the essence of which boils down to the following. If the company, in addition to the salary, has established additional monthly payments, the list (or size) of which changes when salaries are increased, then the coefficient is calculated taking into account these allowances. That is, the total amount of the new salary and allowances (according to the amended list) must be divided by the amount of the previous salary with previously established allowances.
In this case, a situation may arise when the indexation coefficient does not have to be applied, despite the increase in salaries.
For example, if salaries were increased by, say, 20 percent, while at the same time reducing the monthly bonus paid on salary by an amount equivalent to the salary increase. Dividing the new salary (increased salary plus reduced bonus) by the previous salary (salary plus bonus), we get a coefficient equal to 1. Since there was no actual increase in earnings, there is no need to index anything.
Companies paying additional amounts (other than salary) should remember that not all payments taken into account when calculating average earnings need to be adjusted by the calculated increase factor (exceptions are also set out in clause 16 of the Regulations).
The following are not subject to adjustment when recalculating average earnings:
- payments established in relation to tariff rates, salaries (official salaries), monetary remuneration in a range of values (interest, multiple);
- payments taken into account when determining average earnings, set in absolute amounts.
Therefore, if, for example, along with the salary, employees are paid permanent bonuses that are determined in absolute amounts (that is, in specific amounts) that do not depend on the salary, then when calculating vacation pay, there is no need to apply a conversion factor to such bonuses (they are not indexed).
It happens that a company pays bonuses set as a percentage, but based on a different indicator (not salary), for example, a bonus in the form of a certain percentage of the amount of work performed. Do these premiums need to be indexed?
Indeed, from paragraph 16 of the Regulations it clearly follows that when increasing, only those payments that are tied to tariff rates, salaries, and monetary remuneration are taken into account. Thus, for the indexation of payments, it is important not only the fact that they are established in a fixed amount (interest, multiple), but also the dependence on the amount of salary (rate, monetary remuneration). Consequently, payments depending on other indicators are not subject to adjustment when salaries increase in the organization.
Let us note that a similar conclusion is contained in the letter of the Ministry of Health and Social Development of Russia dated June 26, 2008 No. 2337-17.
Important to remember
When tariff rates (salaries) are reduced, the average earnings calculated for calculating vacation pay are not subject to adjustment (earnings are indexed only upward). That is, in this case, the average earnings are not reduced by adjustment, and all payments that are taken into account when calculating the average earnings are taken into account in the actual amount.
Earnings are indexed only with a massive increase in pay
For part-time workers, the average salary is determined in accordance with the general procedure
Payments set in absolute amounts are not adjusted
